Imperfect, but still my, observations on the world of politics, religion, business and entertainment.
I just write it as I see it -- I'm not necessarily saying it's the way things ought to be.
Comments semi-moderated.
And absolutely no spam.
Seriously.

Tuesday, September 24, 2013

Why I'll be voting on the minimum wage in Ontario

Currently, the minimum wage in Ontario is $10.25 per hour. Presuming a 40 hour week, no sick days and two weeks vacation, that works out to about $20,500 per year. Not a bad piece of change; but with the lowest marginal income tax rate of 20% and payroll taxes of 7%, that leaves $14965, well below the "low income cutoff" -- a bastardized way of saying poverty line. And don't forget, a general sales tax rate of 13%, so it goes down to $13,020.

Moreover, the rate has held steady since 2010, during a time when accumulated inflation has increased 6.9% -- and of course that does not include the very volatile energy prices we've experienced as with the rest of the country. So those on minimum are worse off over time.

There is an argument, a strong one, that at the very least there should be a law requiring the minimum wage increase with the rate of inflation.

But many social activists have said that to put people above the poverty line, the minimum needs to go up to $14.00 per hour. Now this doesn't have to be all at once; of course that would be a burden on business. It can be phased in over four years, say 94 cents each. Once the phase-in is complete, then do annual increases on inflation.

The problem, of course, is that every time there is proposed an increase in the minimum wage, businesses both large and small scream bloody murder; saying they will have to lay off people, it will force them to raise prices to the consumer, and that it acts as a disincentive to hard work. All three of these are total nonsense. I'm not aware in the recent past of mass layoffs caused by a raise in the minimum. If anything, an increase also helps people earning higher wages, more often than not such a raise is applied across the board for both hourly and salaried workers (i.e. a fifty cent increase at minimum is reciprocated for higher wage people). That it fuels inflation -- probably, but it's not the only reason prices go up, in fact it's only a small part of it. And rewarding slackers -- seriously? People these days are more than happy to work for minimum wage, it gives them something to do. They'd rather pay taxes than collect welfare.

But as to the argument that a higher minimum wage is bad for business, I say bunk. Here's why I think so:

Those below the low income cut off use a larger portion of their income for basic necessities; food, clothing heat, vehicle fuel. They don't have the ability to afford not necessarily the finer things in life, but simply the items that actually bolster economic growth. These are consumer goods such as home electronics, video games, appliances, furniture. And of course, an annual vacation out of town instead of a "stay-cation". The more money there is to go around, the more there is to spend. The more to spend, higher profits lead from that which usually means the ability to hire more workers.

More workers means more income taxes, and the sooner Ontario can get out of "have-not" status and our current forced acceptance of equalization payments from the feds. Currently, that's just over $3.1 billion, a huge spike from 2010 when it was "just" $347 million. Equalization may be just a drop in the $117 billion revenue bucket, but it basically runs the agriculture, justice and environment departments. Not insignificant items at all.

One of the issues with the inevitable election campaign that may happen here as early as this coming spring, a year and a half before it's supposed to be, will be this basic principle. That no one gets left behind. While this will not be the only deciding factor in my vote, it is now a huge one.

It's time to have a living wage, not a subsistence one. I thank God we don't have third world conditions and pray we never will, but even lower income people have the right to have a reasonable level of participation in our society.

Facebook Badge

About Me

I'm a free thinking spirit with a lot of axes to grind and am not afraid to speak my mind. I know I'm not perfect but I do try to keep my head on straight while keeping an open mind. And yes ... I am still single and hating it.

Blog Rolls

HELP ATTAWAPISKAT

Incredibly, Stephen Harper STILL doesn't want these Cree children to have a proper school like non-natives have access to. I do, and so should you. A Canadian is a Canadian is a Canadian -- whatever the colour of their skin, whatever their religion, whatever their name.

Love: "Falling in love is awfully simple. Falling out of love is simply awful." -- allegedly said by Friedrich Nietzsche

Ideas: "You can imprison a mouse or a man, but you can never imprison an idea." --Tommy Douglas

Imagination: "An imagination is a powerful tool. It can tint memories of the past, shade perceptions of the present, or paint a future so vivid that it can entice...or terrify, all depending on how we conduct ourselves today." -- Jim Davis, creator of Garfield

Education does not (always) equal wisdom: "I'll tell you where I got my education. At Screw U." -- Dolly Parton

You think life is unfair? "This is not Burger King. You can't have it your way." -- Joni Eareckson Tada, mouth painter and evangelical leader

Doomsday Televangelists: "Don't worry about the world coming to an end today. It's already tomorrow in Australia." -- Charles M Schulz, creator of Peanuts

Victory Without War: "Real peace is an illusion. It has never existed and will never exist. Real peace is not an end to conflict, but a means of living with conflict." -- President Richard Nixon

Civil Rights: "We face, therefore, a moral crisis as a country and as a people. It cannot be met by repressive police action. It cannot be left to increased demonstrations in the streets. It cannot be quieted by token moves or talk. It is a time to act in the Congress, in your state and local legislative body and, above all, in all of our daily lives. It is not enough to pin the blame on others, to say this is a problem of one section of the country or another, or deplore the fact that we face. A great change is at hand, and our task, our obligation, is to make that revolution, that change, peaceful and constructive for all. Those who do nothing are inviting shame as well as violence. Those who act boldly are recognizing right as well as reality." -- President John F Kennedy

On No WMD in Iraq: "A proof is a proof. What kind of a proof? It's a proof. A proof is a proof. And when you have a good proof, it's because it's proven." -- Prime Minister Jean Chrétien

Truth: "Life was much more certain behind the Iron Curtain ... The truth was always easy to identify: Everything in Pravda was a lie." -- George Bowser and Ricky Blue, comedians

Response to "My Country Right or Wrong": "When right, keep it right; and when wrong, make it right." -- John F. Kerry, US Senator

Why I am a progressive: "Conservatives are not necessarily stupid, but most stupid people are conservatives." -- John Stuart Mill

Looking on the bright side of life: "I still believe in a place called Hope." -- President William J. Clinton

The bright side (Part Deux): "Yes we can!" -- Senator Barack H. Obama

On the funeral home industry: "Jesus didn't need his vault for long. I mean, He was up and out in only three days." -- Jessica Mitford, noted atheist, speaking to six funeral directors.

Why government and business are in bed together: "It is difficult for a man to understand something when his job depends on not understanding it." -- Upton Sinclair

Grace in adversity: "Every time I'm on ABC, I crash." -- Vinko Bogotaj, the "Agony of Defeat" ski jumper (after he was involved in a car crash on the way to an interview to celebrate the anniversary of the infamous 1971 tumble)